Shaun Insurance Ltd Is Trading Profitably at 30 June 20X0

question 56

Multiple Choice

Shaun Insurance Ltd is trading profitably at 30 June 20X0 as reflected in its financial report. On 24 July 20X0 there is a hailstorm in Sydney that creates unprecedented damage. Although Shaun had undertaken all the normal
Reinsurance processes, it is unlikely that they will be able to pay all claims and there is a high probability that the
Company will have to be wound up. The auditor believes that the financial report as at 30 June 20X0 is true and fair
And that this natural disaster is adequately disclosed. The auditor should issue:

• A) a disclaimer of opinion.
• B) an unmodified opinion with an Emphasis of Matter.
• C) an adverse opinion.
• D) a qualified opinion.

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Definitions:

Popular Democrats

A term that could denote Democratic Party members or politicians who are particularly well-liked or favored by the general populace.

Economic Inequality

The unequal distribution of wealth, income, or resources among individuals in a society.

Call Provision

A feature of a bond or other fixed-income security that allows the issuer to repay the principal before the maturity date, typically at a premium.